Accessible Unlicensed Requires Authentication Published by De Gruyter September 14, 2018

The Domestic Politics of European Preferences Towards Global Economic Governance

Stefan A. Schirm
From the journal New Global Studies

Abstract

Why is global economic governance often marked by controversies among EU member states despite their commitment to joint action? European members of the G20 diverge over public debt to stimulate growth and over global trade imbalances. These issues express differences in economic interests, such as competitiveness, as well as ideational divergences regarding deficit spending and the role of the government in steering the economy. Therefore, domestic politics theories seem to constitute a necessary complement to integration theories in explaining European governments’ preferences. In applying the societal approach, I argue that domestic value-based ideas and material interests shape governmental preferences in international political economy. In doing so, ideas prevail when fundamental economic policy issues such as public debt are at stake, while interests prevail, when governance directly affects the costs and benefits of specific economic sectors. These arguments are analysed by comparing the domestic politics of British, French, German and Italian positions towards two policy debates in the G20.

Acknowledgements

This article is a considerably revised and updated version of a paper written at the Robert Schuman Centre for Advanced Studies of the European University Institute (EUI) in the ‘Global Governance’ and ‘Europe in the World’ Programmes (RSCAS 2015/21). I would like to thank the EUI and the ‘Europe in the World’ Programme for their generous support through the Robert Schuman Fellowship and to the colleagues at EUI for an inspiring working environment. Special thanks go to Ulrich Krotz and to the anonymous reviewers for valuable comments.

References

Amtenbrink, Fabian. 2013. “What Role for the European Union in Shaping Global Financial Governance?” In The EUs Role in Global Governance, edited by B.V. Vooren, S. Blockmans and J. Wouters, 243–71. Oxford: OUP. Search in Google Scholar

Atkins, Ralph, and Quentin Peel. 2011. “G20 Strikes Compromise on Global Imbalances.” Financial Times, February 19. Search in Google Scholar

BBC. 2014. “Matteo Renzi Proposes Big Tax Cuts and Electoral Reform.” BBC News, March 12. http://www.bbc.com/news/world-europe-26549249?print=true. Search in Google Scholar

Bickerton, Christopher J, Dermot Hodson, and Uwe Puetter. 2015. “The New Intergovernmentalism: European Integration in the Post‐Maastricht Era.” Journal of Common Market Studies 53 (4): 703–22.10.1111/jcms.12212 Search in Google Scholar

Brown, Gordon. 2009a. “British Prime Minister Quoted.” Reuters, November 23. http://in.reuters.com/article/idINIndia-44163920091123. Search in Google Scholar

Brown, Gordon. 2009b. Speech of the British Prime Minister “UK’s Brown at CBI Conference.” Reuters, November 23. http://www.reuters.com/assets/print?aid=USBROWN20091123. Search in Google Scholar

Cameron, David. 2010. “Statement of Prime Minister David Cameron to the House of Commons”, November 15. https://www.gov.uk/government/speeches/statement-on-g20-summit-in-seoul. Search in Google Scholar

Campbell, John L. 2001. “Institutional Analysis and the Role of Ideas in Political Economy.” In The Rise of Neoliberalism and Institutional Analysis, edited by J.L. Campbell and O.K. Pedersen, 159–89. Princeton: Princeton University Press. Search in Google Scholar

Chu, Ben. 2011. “Cameron Calls on G20 Leadership to Spearhead Economic Growth Stimulus.” The Independent, September 23. http://www.independent.co.uk/news/business/news/cameron-calls-on-G-20-leadership-to-spearhead-economic-growth-stimulus-2359389.html# Search in Google Scholar

Cini, Michelle. 2013. “Intergovernmentalism.” In European Union Politics, 4th ed. edited by M. Cini and N. Perez-Solorzano Borragan, 71–84. Oxford: Oxford University Press. Search in Google Scholar

Cooper, Andrew F. 2010. “The G20 as an Improvised Crisis Committee and/Or a Contested ‘Steering Committee’ for the World.” International Affairs 86 (3): 741–57.10.1111/j.1468-2346.2010.00909.x Search in Google Scholar

Debaere, Peter. 2014. “The EU’s Role and Performance within the G20 in the Area of Finance and Development.” In The European Union as a Diplomatic Actor, edited by J. Koops and G. Macaj. Basingstoke: Palgrave. Search in Google Scholar

Driftmann, Hans Heinrich. 2010 “Das Spiel mit Wechselkursen birgt Gefahren.” Interview in Manager Magazin, October 13. http://www.manager-magazin.de/politik/konjunktur/a-722466.html. Search in Google Scholar

The Economist. 2009. “The G20.” Talking shop on Thames, March 12. Search in Google Scholar

Emié, Bernard HE. 2011. “Speech by the French Ambassador to the United Kingdom at the G20 Lunch.” London: Institute of Chartered Accountants. June 23. https://uk.ambafrance.org/IMG/pdf/Amba_S_2_23062011.pdf. Search in Google Scholar

Eurobarometer. 2010. “Public Opinion in the European Union.” Standard Eurobarometer 74, Autumn, http://ec.europa.eu/public_opinion/archives/eb/eb74/eb74_publ_en.pdf, Annex: http://ec.europa.eu/public_opinion/archives/eb/eb74/eb74_anx_full_fr.pdf. Search in Google Scholar

Eurobarometer. 2011. “Public Opinion in the European Union.” Standard Eurobarometer 75, Spring, http://ec.europa.eu/public_opinion/archives/eb/eb75/eb75_publ_en.pdf, Annex: http://ec.europa.eu/public_opinion/archives/eb/eb75/eb75_anx_full_fr.pdf. Search in Google Scholar

Faujas, Alain. 2013. “Les dossiers economiques ressoudent le G20.” Le Monde, September 6. www.lemonde.fr/economie/article/2013/09/06/les-dossiers-economiques-ressoudent-le-G20_3472330_3234.html. Search in Google Scholar

Fingar, Courtney. 2010. “George Osborne Looks for Global Answer to Global Imbalances.” The Banker, December 23. http://www.thebanker.com/Profiles/People/Big-Interview/George-Osborne-looks-for-global-answer-to-global-imbalances?ct=true. Search in Google Scholar

Fioretos, Orfeo. 2001. “The Domestic Sources of Multilateral Preferences: Varieties of Capitalism in the European Community.” In Varieties of Capitalism, edited by P.A. Hall and D. Soskice, 213–44. Oxford: Oxford University Press. Search in Google Scholar

Fioretos, Orfeo. 2010. “Europe and the New Global Economic Order: Internal Diversity as Liability and Asset in Managing Globalization.” Journal of European Public Policy 17 (3): 383–99.10.1080/13501761003661984 Search in Google Scholar

Fotina, Carmine. 2015. “Confindustria report bills Germany’s surplus as ‘unsustainable’.” http://www.italy24.ilsole24ore.com/art/government-policies/2015-01-16/industrial-compact-161947.php?uuid=ABmf04eC. Search in Google Scholar

Frieden, Jeffry A, and Ronald Rogowski. 1996. “The Impact of the International Economy on National Policies: An Analytical Overview.” In Internationalization and Domestic Politics, edited by R.O. Keohane and H.V. Milner, 25–47. Cambridge: Cambridge University Press. Search in Google Scholar

G20. 2011. “Communique – Meeting of Finance Ministers and Central Bank Governors.” Washington, DC. April 14. http://www.g20.utoronto.ca/2011/2011-finance-110415-en.html. Search in Google Scholar

Gauthier-Villars, David. 2009. “Sarkozy Defends French Stimulus Plan.” Wall Street Journal, February 8. http://online.wsj.com/articles/SB123387459145754271. Search in Google Scholar

Goldstein, Judith, and Robert O Keohane. 1993. “Ideas and Foreign Policy: An Analytical Framework.” In Ideas and Foreign Policy: Beliefs, Institutions and Political Change, edited by J. Goldstein and R.O. Keohane, 3–30. Ithaca, NY: Cornell UP. Search in Google Scholar

The Guardian. 2014. “Editorial – the Guardian View on the World Economy: Mr Cameron’s Grim Forebodings.” November 18. http://www.theguardian.com/commentisfree/2014/nov/18/guardian-view-world-economy-camerons-grim-forebodings. Search in Google Scholar

Haas, Ernst B. 1958. The Uniting of Europe. Stanford, California: Stevens. Search in Google Scholar

Hall, Peter A. 1997. “The Role of Interests, Institutions, and Ideas in the Comparative Political Economy of the Industrialized Nations.” In Comparative Politics. Rationality, Culture, and Structure, edited by M. Lichbach and A. Zuckerman, 174–207. Cambridge: Cambridge University Press. Search in Google Scholar

Helleiner, Eric. 2014. The Status Quo Crisis. Global Financial Governance after the 2008 Financial Meltdown. Oxford: Oxford University Press. Search in Google Scholar

Hodson, Dermot. 2011. “The Paradox of EMU’s External Representation: The Case of the G20 and the IMF.” paper presented at the EUSA 12th Biennial International Conference. Boston Mass. March 3–5. Search in Google Scholar

Hollande, Francois. 2013. “Speech by Francois Hollande at the 21st Ambassadors’ Conference.” Paris. August 27. https://uk.ambafrance.org/French-President-focusses-on. Search in Google Scholar

Hollande, Francois. 2014. “President Hollande Holds Talks with US Treasury Secretary.” Communique issued by the Presidency of the Republic, Paris January 7. http://www.ambafrance-uk.org/President-Hollande-has-meeting. Search in Google Scholar

Hooghe, Lisbet, and Gary Marks. 2009. “A Postfunctionalist Theory of European Integration: From Permissive Consensus to Constraining Dissensus.” British Journal of Political Science 39 (1): 1–23.10.1017/S0007123408000409 Search in Google Scholar

Ioannou, Demosthenes, Patrick Leblond, and Arne Niemann. 2015. “European Integration and the Crisis: Practice and Theory.” Journal of European Public Policy 22 (2): 155–76.10.1080/13501763.2014.994979 Search in Google Scholar

Jensen, Carsten Stroby. 2013. “Neo-Functionalism.” In European Union Politics, 4th ed. edited by M. Cini and N. Perez-Solorzano Borragan, 59–70. Oxford: Oxford University Press. Search in Google Scholar

Katzenstein, Peter J. 1978. “Introduction: Domestic and International Forces and Strategies of Foreign Economic Policy.” In Between Power and Plenty: Foreign Economic Policies of Advanced Industrial States, edited by P.J. Katzenstein, 3–22. Madison: University Wisconsin Press. Search in Google Scholar

Kirton, John J. 2013. G20 Governance for a Globalized World. Farnham: Ashgate. Search in Google Scholar

Krotz, Ulrich. 2015. History and Foreign Policy in France and Germany. Houndmills: Palgrave Macmillan. Search in Google Scholar

Krotz, Ulrich, and Joachim Schild. 2013. Shaping Europe: France, Germany, and Embedded Bilateralism from the Elysee Treaty to Twenty-First Century Politics. Oxford: Oxford University Press. Search in Google Scholar

Luckhurst, Jonathan. 2012. “The G20 and Ad Hoc Embedded Liberalism: Economic Governance amid Crisis and Dissensus.” Politics & Policy 40 (5): 740–82.10.1111/j.1747-1346.2012.00387.x Search in Google Scholar

Merkel, Angela. 2010. “Regierungserklärung von Bundeskanzlerin Merkel zum EU-Gipfel in Brüssel und zum Gipfel der G20-Staaten in Seoul.” October 27. http://bundeskanzlerin.de/Content/DE/Regierungserklaerung/2010/2010-10-27-merkel-regerklaerung-eu-G-20.html. Search in Google Scholar

Merkel, Angela. 2011. “Rede von Bundeskanzlerin Angela Merkel anlässlich des BDI-Tags der deutschen Industrie.” September 27. http://www.bundeskanzlerin.de/nn_683608/Content/DE/Rede/2011/09/2011-09-27-bkin-bdi.html. Search in Google Scholar

Milliken, David. 2010. “CBI Head Warns of ‚Scary’ Trade War Prospect.” Reuters, October 22. http://uk.reuters.com/article/uk-britain-cbi-idUKLNE69L00820101022. Search in Google Scholar

Milner, Helen V. 1997. Interests, Institutions, and Information. Domestic Politics and International Relations. Princeton: Princeton University Press. Search in Google Scholar

Monti, Mario. 2012. “Monti Pushes G20 to Spur Growth.” Speech of the Italian Prime Minister at the G20 Summit in Los Cabos, June 16 quoted in La Gazzetta Del Mezzogiorno. Search in Google Scholar

Moravcsik, Andrew. 1993. “Preferences and Power in the European Community: A Liberal Intergovernmentalist Approach.” Journal of Common Market Studies 31 (4): 473–524.10.1111/j.1468-5965.1993.tb00477.x Search in Google Scholar

Moravcsik, Andrew. 1997. “Taking Preferences Seriously: A Liberal Theory of International Politics.” International Organization 51 (4): 513–53.10.1162/002081897550447 Search in Google Scholar

Moravcsik, Andrew. 1999. “The Choice for Europe – Current Commentary and Future Research.” Journal of European Public Policy 6 (1): 168–79. Search in Google Scholar

Moschella, Manuela, and Lucia Quaglia. 2016. “To Agree or Not to Agree? Explaining the Cohesiveness of the European Union in the Group of Twenty.” Journal of European Public Policy 23 (6): 906–24.10.1080/13501763.2015.1073341 Search in Google Scholar

Niemann, Arne, and Demosthenes Ioannou. 2015. “European Economic Integration in Times of Crisis: A Case of Neofunctionalism?” Journal of European Public Policy 22 (2): 196–218.10.1080/13501763.2014.994021 Search in Google Scholar

Organization for Economic Cooperation and Development (OECD). 2016. “G20 – The OECD and G20.” Official web-site. https://www.oecd.org/g20/summits/pittsburgh/. Search in Google Scholar

Palmer, Randall. 2012. “Canada to Tell G20 Austerity and Growth Possible.” Reuters, June 11. Search in Google Scholar

Patrick, Stewart M. 2010. The G20 and the United States: Opportunities for More Effective Multilateralism. New York: A Century Foundation Report. Search in Google Scholar

Pollack, Mark A. 2005. “Theorizing the European Union: International Organization, Domestic Polity, or Experiment in New Governance?” Annual Review of Political Science 8: 357–98.10.1146/annurev.polisci.8.082103.104858 Search in Google Scholar

Rommerskirchen, Charlotte. 2013. “Keeping the Agents Leashed: The EU’s External Economic Governance in the G20.” Journal of European Integration 35 (3): 347–60.10.1080/07036337.2013.774782 Search in Google Scholar

Sarkozy, Nicholas. 2011. “Sarkozy says IMF should supervise global imbalances.” Reuters, January 27. https://www.reuters.com/article/us-davos-sarkozy-imf/sarkozy-says-imf-should-supervise-global-imbalances-idUSTRE70Q3AF20110127. Search in Google Scholar

Schäuble, Wolfgang. 2010. “The US Has Lived on Borrowed Money for Too Long.” Interview in Der Spiegel. November 8. http://www.spiegel.de/international/world/interview-with-german-finance-minister-schaeuble-the-us-has-lived-on-borrowed-money-for-too-long-a-727801.html. Search in Google Scholar

Schimmelfennig, Frank. 2015. “Liberal Intergovernmentalism and the Euro Area Crisis.” Journal of European Public Policy 22 (2): 177–95.10.1080/13501763.2014.994020 Search in Google Scholar

Schirm, Stefan A. 2009. “Ideas and Interests in Global Financial Governance: Comparing German and US Preference Formation.” Cambridge Review of International Affairs 22 (3): 501–21.10.1080/09557570903103992 Search in Google Scholar

Schirm, Stefan A. 2016. “Domestic Ideas, Institutions, or Interests? Explaining Governmental Preferences Towards Global Economic Governance.” International Political Science Review 37 (1): 66–80.10.1177/0192512114540190 Search in Google Scholar

Sharma, Shalendra D. 2014. “The Global Economic Imbalances: The Dangers of Not Rebalancing.” New Global Studies 8 (2): 153–76. Search in Google Scholar

Smyth, Jamie. 2014. “US Urges EU to Do More to Stimulate Its Economy.” Financial Times. http://www.ft.com/intl/cms/s/0/4137a208-4160-11e4-b98f-00144feabdc0.html#axzz3Qtq1jnk8). Search in Google Scholar

Steinbrück, Peer. 2009. “G8: Ende der expansiven Geldpolitik?” Handelsblatt, June 12. www.handelsblatt.com/politik/nachrichten/g8-ende-der-expansiven-geldpolitik Search in Google Scholar

Telò, Mario. 2006. Europe: A Civilian Power? European Union, Global Governance, World Order. London: Palgrave Macmillan. Search in Google Scholar

Tremonti, Giulio. 2011. “Statement of the Italian Minister of Economy and Finance at the International Monetary and Financial Committee of the IMF.” April 16. https://www.imf.org/external/spring/2011/imfc/statement/eng/ita.pdf. Search in Google Scholar

Verdun, Amy. 2015. “A Historical Institutionalist Explanation of the EU’s Responses to the Euro Area Financial Crisis.” Journal of European Public Policy 22 (2): 219–37.10.1080/13501763.2014.994023 Search in Google Scholar

Wagstyl, Stefan, and James Politi. 2014. “Merkel Defends Fiscal Rules as Paris and Rome Put Growth First.” Financial Times, October 16. http://www.ft.com/intl/cms/s/0/fedbfcfc-5518-11e4-b616-00144feab7de.html#axzz3PHo3wk1L Search in Google Scholar

Wiener, Antje, and Thomas Diez, eds. 2009. European Integration Theory. Oxford: OUP. Search in Google Scholar

Wintour, Patrick. 2012. “G20 to Endorse Growth Plan and Urge More Financial Integration in Europe.” The Guardian, June 19. Search in Google Scholar

Wintour, Patrick, and Larry Elliot. 2011. “G20 Leaders Press Italy to Accept IMF Checks on Cuts Programme.” The Guardian, November 4. Search in Google Scholar

Woods, Ngaire. 2010. “Global Governance after the Financial Crisis: A New Multilateralism or the Last Gasp of the Great Powers?” Global Policy 1 (1): 51–63.10.1111/j.1758-5899.2009.0013.x Search in Google Scholar

World Trade Organization (WTO). 2015. “Total Merchandise Trade.” http://stat.wto.org/StatisticalProgram/WSDBViewDataPrintableVersion.aspxLanguage=E&TOPIC=MT&SUBTOPIC=TV&PAGEINDEX=1&ROWSCNT=30&STARTYEAR=2009&ENDYEAR=2013&MSTR_QUERY_TYPE=PRINT. Search in Google Scholar

Wouters, Jan, Steven Sterkx, and Tim Corthaut. 2010. “The International Financial Crisis, Global Financial Governance, and the European Union.” WP no. 52, Leuven: Leuven Centre for Global Governance Studies. Search in Google Scholar

Published Online: 2018-09-14
Published in Print: 2018-11-27

© 2018 Walter de Gruyter GmbH, Berlin/Boston